Category Archives: Energy Agenda

Meanwhile Back in Syria, Destruction

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Extremists destroy 13th century Muslim tomb in Syria

Nusra Front Islamist militants linked to al-Qaeda have blown up the 13th century tomb of a revered Islamic scholar in southern Syria, Syrian state news agency SANA and monitoring group, the Syrian Observatory for Human Rights, reported.

The mausoleum of Imam Nawawi is in Nawa in Deraa province near the Jordanian border, a town captured by groups fighting the Syrian government in November.

The Nusra Front follows the same puritanical interpretation of Sunni Islam adopted by the Islamic State group that has also destroyed shrines in areas of eastern and northern Syria that it controls. They see tombs as sacrilegious.

Investigators confident that chlorine gas was used in 3 Syrian villages

UNITED NATIONS — Chemical weapons investigators concluded “with a high degree of confidence” that chlorine gas was used as a weapon against three opposition-controlled villages in Syria last year, affecting between 350 and 500 people and killing 13, according to a report obtained Tuesday by The Associated Press.

The third report by a fact-finding mission from the Organization for the Prohibition of Chemical Weapons didn’t apportion blame but said 32 of 37 people interviewed “saw or heard the sound of a helicopter over the village at the time of the attack with barrel bombs containing toxic chemicals.”

The investigators said 26 people heard the distinctive “whistling” sound of the falling barrel bombs containing toxic chemicals and 16 visited the impact sites and saw the bombs or their remnants. They said 29 people smelled “the distinctive odor of the gas cloud” released after the bombs hit the ground, mainly describing it “as intense, chlorine-like, similar to cleaning material used to clean toilets, but much stronger.”

The report includes a description of 142 videos and 189 pieces of material obtained by the investigators as well as photos of impact sites and the inner chlorine cylinder from a barrel bomb.

The mission was established by the OPCW on April 29 to establish the facts surrounding allegations of the use of chlorine “for hostile purposes” in Syria. Chlorine gas is readily available and is used in industry around the world, but it can also be used as a weapon.

The U.N. Security Council has been intensely involved in the issue of alleged chemical weapons use in Syria. After an August 2013 sarin gas attack near Damascus in which the U.S. says more than 1,400 people were killed, the Security Council unanimously adopted a resolution backed by the U.S. and Russia on Sept. 27, 2013, ordering Syria’s chemical weapons stockpile to be destroyed. U.N. investigators could not find enough evidence to assess blame for the sarin attack. Syria’s declared chemical weapons stockpiles have since been destroyed under international supervision, but questions remain about whether it may still be hiding deadly chemical agents.

Chlorine gas is not listed as a chemical weapon. But eight council members, including the United States, said in a Dec. 30 letter accompanying the OPCW report that the 2013 resolution also states that any use of chemical weapons threatens international peace and security and must be condemned.

The 15 council members discussed the fact-finding mission’s report behind closed doors Tuesday, and diplomats said the U.S. and other Western nations who signed the letter along with Jordan urged Security Council action in response to the findings. But Russia, Syria’s closest ally, insisted that the report on chlorine attacks was an issue for the OPCW, which polices the Chemical Weapons Convention, the diplomats said, speaking on condition of anonymity because consultations were private.

Syria’s Deputy Foreign Minister Faysal Mekdad told an OPCW meeting on Dec. 1 that his government has never used chemical weapons or chlorine gas during the country’s four-year civil war, which has claimed over 200,000 lives and displaced one third of the country’s population. He said terror groups “have used chlorine gas in several of the regions of Syria and Iraq.”

But U.S. Ambassador Samantha Power tweeted that “only Syrian regime uses (helicopters).” She also tweeted that the Syrian “Regime must be shown it is not enough to destroy declared CW (chemical weapons); must stop dropping chemical-laden explosives on civilians.”

The investigators interviewed 14 people from the village of Talmenes in Idlib governorate about barrel bomb attacks on April 21 and April 24. At two houses that were hit, a 7-year-old boy, a teenage girl, and the matriarch of a family died from exposure to chlorine gas, they said. Domestic animals including cows, goats and sheep also died at both houses.

Fourteen people from the village of Al Tamanah, also in Idlib, were interviewed by the mission’s investigators about five incidents in April and May – all but one at night. Eight members of two families who had sought refuge in the village died shortly after separate attacks involving the toxic chemical, the report said.

Investigators said they interviewed nine people from Kafr Zita in Hama Governorate in northern Syria and were told that the village had been the target of hundreds of attacks with conventional weapons and 17 attacks using toxic chemicals between April and August.

Obama Starts off New Year with Veto Pen

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The State of the Union speech is right around the corner and Barack Obama flying Air Force 1 into overdrive pushing items he wants to take credit for including lower gas prices.

President Obama Chooses Vetoes Over Veterans

President Obama has enough time to threaten to veto three bipartisan bills from Congress. His Administration made room in the schedule to issue 300 new rules in the first week of the new year. The President is even taking the time to tell people what cars they should buy.

But he can’t seem to find a single spare minute to visit the Phoenix VA at the center of a nationwide scandal even though his motorcade drove right past it today.

The Veterans Affairs system is still broken. Though the House and Senate passed the start of good reform last year, the bureaucracy still needs major reforms so that veterans get the care they need in time. But the President still hasn’t taken the time to offer a long-term plan to fix the VA. President Obama needs to change his priorities.

It’s time for the White House to stop blocking bipartisan bills that the people want and get to work on real solutions and genuine reform. Don’t drive past the problems, Mr. President. Start helping us fix them.

In the first two days of the new Congress, President Obama has already issued three veto threats against bipartisan bills. Despite the bills having strong support on both sides of the aisle, President Obama has indicated that he will veto bills restoring the 40-hour workweek under Obamacare, approving the Keystone XL pipeline, and delaying a part of the flawed Dodd-Frank regulations.

Obama: Don’t buy that gas guzzler, fuel prices are gonna go up

President visits Ford’s Michigan Assembly Plant today

“I would strongly advise American consumers to continue to think about how you save money at the pump because it is good for the environment, it’s good for family pocketbooks and if you go back to old habits and suddenly gas is back at $3.50, you are going to not be real happy,” the President told The Detroit News in a phone interview, ahead of his visit to Ford’s Michigan Assembly Plant today.

“The American people should not believe that … demand for oil by China and India and all these emerging countries is going to stay flat,” Obama told The Detroit News. “Just demographics tell us demand is going to continue to grow, that over the long term it will grow faster than supply and we have to be smart about our energy policy,” he said.

Obama is using the stop at the Ford facility in Wayne, Michigan to tout his administration’s auto industry bailout. The facility, where Ford produces the Focus and C-Max, is currently idle due to slow sales.

Who is Funding the Leftists in Latin America?

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It has been proven that the Soviet KGB funded terror and operations against the West.

Now we have China doing the same thing in the Western hemisphere.

China Boosts Support for Latin Leftists

China Pledged Billions of Dollars of Financing to Venezuela and Ecuador, Two South American Energy Exporters Battered by Falling Oil Prices

China pledged billions of dollars of financing to Venezuela and Ecuador, two South American energy exporters battered by falling oil prices, as Beijing moved to secure resources and allies in the region.

China has increased its diplomatic clout throughout Latin America by extending over $100 billion in credit to the region since 2005, according to figures from Boston University’s Global Economic Governance Initiative.

Beijing has become the biggest foreign financier of both Venezuela and Ecuador, two oil-rich, leftist allies eager to help counter U.S. sway in the region.

Following a meeting with Chinese President Xi Jinping , his Venezuelan counterpart Nicolás Maduro announced bilateral accords that would bring $20 billion in new investment to Venezuela. Ecuador said it secured $7.5 billion in financing.

Both Mr. Maduro and his Ecuadorian counterpart, Rafael Correa, were in Beijing along with officials from various Latin American nations to take part in a regional gathering.

Both Latin countries, highly dependent on oil exports to pay for heavy public spending, were in dire need of a helping hand as crude prices tumble to less than half of their level from several months ago. A barrel of oil sold for about $50 on Wednesday.

Last week, Venezuela’s central bank released long-delayed figures, revealing the country entered a recession in 2014.

Venezuela needs oil to average around $117.50 a barrel to balance its 2015 budget, according to Deutsche Bank estimates.

In Ecuador, officials have reported a slowing economy, with growth of 3.4% in the third quarter, down from 5.6% in the July-through-September period in 2013.

Mr. Maduro, who has seen his approval rating swoon along with oil prices, offered few details on the new accords with China, which he said involved projects in the energy, industrial and housing sectors.

The Venezuelan leader, who has struggled to keep supporters happy amid shortages of basic goods, praised China for coming to the rescue.

“The economic war against our people and the oil price war is an opportunity to grow closer to our allies,” said Mr. Maduro, who has blamed Venezuela’s spiraling economy on an alleged plot by enemies of his leftist government.

Venezuela is slated to hold hotly contested legislative elections in December that many analysts see as a referendum on Mr. Maduro’s performance.

At a daily press briefing on Wednesday, Chinese Foreign Ministry spokesman Hong Lei said “Relevant financing cooperation is going smoothly” with Venezuela. State-run China Central Television paraphrased Chinese President Xi Jinping as calling for “promoting oil development” in a meeting with Mr. Maduro.

Experts said it was unclear without further details what kind of impact the new financing would have on the Venezuelan and Ecuadorian economies.

China has extended to Caracas some $50 billion in credit since 2007 in exchange for guaranteed oil. It has committed more than $12 billion in financing to Ecuador between 2009 and 2014.

Wednesday’s agreement underscored China’s continuing support for Mr. Maduro despite his political woes, said Risa Grais Targow, senior Latin America analysts for Eurasia Group.

“This is because the Chinese are heavily exposed to Venezuela and are likely concerned about the prospect of regime change,” she said in a client note.

China-Latin America Finance Database

Since 2005, China has provided upwards of $87 billion in loan commitments to Latin American countries. China’s loan commitments of $37 billion in 2010 were more than those of the World Bank, Inter-American Development Bank, and U.S. Export-Import Bank combined. This interactive database provides up-to-date information on Chinese lending in Latin America by country, lender, sector and year.

This database stems from a collaborative project by Boston University’s Global Economic Governance Initiative and Tufts University’s Global Development and Environment Institute. The resulting Inter-American Dialogue publication, The New Banks in Town: Chinese Finance in Latin America, by Kevin Gallagher, Amos Irwin, and Katherine Koleski is the main source of featured data and conclusions. Loan data is updated on an annual basis.

Taxes Driving U.S. Corporations to Shutter

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No wants to change the tax code and no one wants to allow U.S. currency offshore to be repatriated so…

U.S. Stands to Lose Billions From Corporate Tax Inversions

One Estimate Puts Lost Tax Revenue at Close to $20 Billion Over a Decade

How much revenue does the U.S. Treasury stand to lose from corporate tax inversions? It is difficult to say precisely, but one estimate puts the figure at close to $20 billion. Calculating how much the U.S. Treasury would lose is nearly impossible because of a dearth of reliable tax data from companies’ public filings and the variables in how companies can structure their businesses, tax experts say. One way companies seek to reduce their U.S. tax bills by reincorporating overseas is to transfer pretax income from their U.S. operations to their foreign parent companies through intercompany debt, says corporate tax consultant Robert Willens. But it is difficult to know how large of an impact that will have for a given company because of limits on how much interest companies can deduct from their taxable income. There is also a risk that companies act too aggressively attract scrutiny from the Internal Revenue Service. Another variable is the cash many companies keep overseas to avoid U.S. taxes. The cash only becomes taxable once it is brought back to the U.S. to pay dividends to shareholders or is used for other purposes. But companies don’t always disclose how much cash they bring back home or when.

Some companies say they were never going to repatriate the cash anyway, so they aren’t depriving the U.S. tax base of revenue by moving out of the country. Report: 1 million corporations closed, 60,000 a year; taxes blamed America has lost 1 million corporations since their height during the Reagan era, in part driven out of business by the industrialized world’s highest corporate tax rate, according to a new report from the nonpartisan Tax Foundation. The just-issued research revealed that the number of traditional “C” corporations has fall to a “historically low level” and wiped out the corporate tax base, resulting in the federal government relying much more on individual income taxes to fund its operation. “There is now more net business income taxed under the individual income tax system than the traditional corporate tax code, a trend that does not appear to be stopping any time soon,” said the report provided to Secrets. It said that corporate closings have recently picked up steam and now 60,000 a year are shut down. A driver in the loss of traditional corporations has been the ever-rising corporate tax rate, an issue Washington has been ducking for years. The Tax Foundation said that many corporate titans have taken matters into their own hands by restructuring as “pass through” operations which allows profits to be taxed at lower individual rates. “More than 60 percent of U.S. business profits are now taxed under the individual income tax code rather than the corporate tax code, which explains why the U.S. collects a relatively small amount of tax revenue from corporations despite having the developed world’s highest corporate tax rate,” said the foundation. “Although this kind of do-it-yourself tax reform is beneficial to the overall economy because it lowers the tax burden on business investment, something is nevertheless lost,” said Tax Foundation Chief Economist William McBride in a statement. “Pass-through businesses do not offer the same ability to invite investment from thousands of shareholders or easily transfer shares. That means the decline of the traditional corporate sector represents an economic distortion that is hobbling American industrial capacity and job growth. No other developed country has such a distorted business sector,” he added.

Report: 1 million corporations closed, 60,000 a year; taxes blamed

America has lost 1 million corporations since their height during the Reagan era, in part driven out of business by the industrialized world’s highest corporate tax rate, according to a new report from the nonpartisan Tax Foundation.

The just-issued research revealed that the number of traditional “C” corporations has fall to a “historically low level” and wiped out the corporate tax base, resulting in the federal government relying much more on individual income taxes to fund its operation.

“There is now more net business income taxed under the individual income tax system than the traditional corporate tax code, a trend that does not appear to be stopping any time soon,” said the report provided to Secrets.

It said that corporate closings have recently picked up steam and now 60,000 a year are shut down.

A driver in the loss of traditional corporations has been the ever-rising corporate tax rate, an issue Washington has been ducking for years.

The Tax Foundation said that many corporate titans have taken matters into their own hands by restructuring as “pass through” operations which allows profits to be taxed at lower individual rates.

“More than 60 percent of U.S. business profits are now taxed under the individual income tax code rather than the corporate tax code, which explains why the U.S. collects a relatively small amount of tax revenue from corporations despite having the developed world’s highest corporate tax rate,” said the foundation.

“Although this kind of do-it-yourself tax reform is beneficial to the overall economy because it lowers the tax burden on business investment, something is nevertheless lost,” said Tax Foundation Chief Economist William McBride in a statement.

“Pass-through businesses do not offer the same ability to invite investment from thousands of shareholders or easily transfer shares. That means the decline of the traditional corporate sector represents an economic distortion that is hobbling American industrial capacity and job growth. No other developed country has such a distorted business sector,” he added.

Then comes Congress with threats:

The Senate’s chief tax writer, Ron Wyden, wants U.S. companies looking to move abroad for a lower tax bill to understand one thing: “[T]hey won’t profit from abandoning the U.S.”

The Democrat’s comments, made in a Wall Street Journal op-ed last week, came amidst a spate of proposed mergers between major American companies and foreign rivals that would end up in their reducing their U.S. tax bill.

The proposed merger that’s gotten the most attention of late: The so far unsuccessful bid by Pfizer (PFE) for British pharmaceutical maker AstraZeneca (AZN).

Today, a U.S. company can move to a more tax-friendly country in a process known as “inversion” if the foreign partner owns more than 20% of the stock in the merged entity, among other requirements.

Wyden wants to raise that threshold to at least 50%, and he would like to make such a provision retroactive to May 8, 2014.

 

General Shelton Slams Iran

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The summary below translates into a few questions. Why does Secretary of State John Kerry continue to legitimize Iran and to bring the country on equal footing globally as they are a rogue nation? The next question, will the White House continue to ignore Iran’s history of terrorism?

Iran is a dangerous ‘ally’ in Syria and Iraq

At the dawn of 2015, the U.S. has yet to articulate a comprehensive foreign-policy strategy to counter the influence and territorial gains of Islamic State, the terrorist group that emerged last year — and poses a dangerous and vexing threat to stability across the Middle East and North Africa. By the Pentagon’s admission, we neither understand the underlying ideology of the merciless group nor have a grasp of all the players in the region who have aggravated the crisis.

Indeed, the fog of war seems to have muddied Iran’s role in this dark chapter of regional affairs. Is Tehran an ally or a nemesis in the fight against Islamic State? At least initially, the U.S. believed that Iran could play a constructive role in combating a mutual adversary. Secretary of State John F. Kerry, touting the age-old axiom “the enemy of my enemy is my friend,” suggested that Iran could be part of the solution.

The only trouble is that Iran is a major part of the challenges we face.

Islamic State, also known by the acronym ISIS, rose out of the sectarian conflict that exploded in Iraq in 2004, shortly after the U.S.-led occupation. Iran immediately backed Shiite Muslim militant factions with training, money, weapons and intelligence, sparking a vicious Sunni Muslim militant counter-reaction that nourished Al Qaeda and, later, ISIS. The rise to power of Nouri Maliki, an inept and corrupt Shiite prime minister with strong ties to Tehran, sealed Iraq’s fate not only as a breeding ground for Sunni extremism, but as an Iranian satellite state.

Iran now has more than 7,000 Revolutionary Guards and elite Quds Force members in Iraq, according to the National Council of Resistance of Iran, an Iranian opposition organization. The killing of Iranian military advisor Hamid Taqavi, a brigadier general in the Revolutionary Guard, in December in Samarra put an exclamation point on the scope and significance of the Revolutionary Guard’s presence in Iraq. As the most senior commander of the Quds Force to die abroad since the Iran-Iraq war ended 26 years ago, Taqavi played a key role in Tehran’s training and control of Shiite militias in Iraq.

Amnesty International has pointed to the presence of Iran’s proxy militias in Iraq as a key source of instability and sectarian conflict there. In an October report called “Absolute Impunity, Militia Rule in Iraq,” Amnesty found that the growing power of Shiite militias has contributed to a “deterioration in security and an atmosphere of lawlessness” and that the Shiites “are ruthlessly targeting Sunni civilians … under the guise of fighting terrorism, in an apparent bid to punish Sunnis for the rise of the ISIS and for its heinous crimes.”

Iranian clerics’ paranoia over domestic discontent has made meddling in regional countries, Iraq in particular, a cornerstone of Tehran’s foreign policy and survival strategy. Speaking at Taqavi’s funeral, top Iranian security official Ali Shamkhani said, “Taqavi and people like him gave their blood in Samarra so that we do not give our blood in Tehran.”

Iran’s reasons for “fighting” ISIS diverge considerably from U.S. objectives. Whereas we seek a stable and nonsectarian government in Iraq, the mullahs’ interests are best served by the ascension of a subordinate Shiite leadership, enabling them to use the neighbor to the west as a springboard for their regional hegemonic, anti-Western designs. The Iranian government sees an opening in the turmoil in Iraq for consolidating its grip on that country, weakened by the ouster of Prime Minister Maliki.

Iran’s role in the civil war in Syria is following a similar dynamic: Through its proxy Hezbollah — the Shiite Muslim political and paramilitary organization — Iran has served as Syrian President Bashar Assad’s battering ram against his people, killing and enraging Sunnis and fueling ISIS’ exponential growth.

Aiding and abetting Iran’s destructive role in Iraq or Syria would be a strategic mistake for the U.S. that only exacerbates a profound crisis. It is a dangerous irony to even consider allying with Iran — which the U.S. State Department still considers the world’s most active state sponsor of terrorism — to fight the terrorism inspired by ISIS.

Iranian opposition leader Maryam Rajavi, who is well versed in the agenda and ambitions of Tehran’s mullahs, rightly describes a potential Western alliance with Iran against ISIS as akin to “jumping from the frying pan into the fire.” The eviction of the Iranian government from the region, especially from Syria and Iraq, must be part of the U.S. strategy for countering ISIS and resolving the sectarian divides that drive extremism throughout the region, Rajavi says.

She’s right. The U.S. must think beyond ISIS to what kind of region will be left in its smoldering wake. As the U.S. weighs its policy options, any scenario that leaves Iran in control of large swaths of the region must be rejected outright.
Gen. Hugh Shelton served as the 14th chairman of the Joint Chiefs of Staff.